Australian Disney+ users face price hike to $17.99 for premium features, including 4K resolution, starting March 5.
Starting March 5, Disney+ subscribers in Australia will face a significant price hike. The existing $13.99 monthly subscription will undergo changes, limiting video quality and the number of concurrent users per account.
For users wishing to retain the current offerings of 4K video resolution, high-definition audio, and four simultaneous streams, the cost will rise to $17.99 per month.
The AFR reports this development precedes the anticipated Australian debut of a more affordable, ad-supported version of the service, dubbed Disney+ Basic. This model was first introduced in the United States last year. Comparable shifts toward ad-inclusion have been seen with Netflix and Binge, and Amazon Prime Video is set to introduce advertisements in Australia later this year.
A significant aspect of this change is the over 40% increase in royalty fees. This comes as Disney grapples with considerable global losses incurred from operating Disney+. For the fiscal year ending September 30, Disney’s direct-to-consumer segment, encompassing Disney+, reported an operating loss of $US2.6 billion ($3.95 billion), a reduction from $US4 billion in the previous year.
In response, the company has started selling its extensive back catalogue, including titles like “Prison Break”, “Ghost Whisperer”, “MAS*H”, and “Homeland”, to local free-to-air networks’ streaming services.
Additionally, the Albanese government is on the verge of presenting its strategy to mandate streaming services to allocate a certain portion of their revenue or production budget towards Australian content. The government has proposed content quotas for platforms such as Netflix, Disney+, and Amazon Prime Video, with plans to implement legislation from July 1. The proposals include a tiered system based on the number of subscribers and a flat rate based on local revenue.
Despite the escalating cost-of-living crisis, which analysts predicted would lead to a decline in Netflix subscribers in Australia, Disney+ experienced growth in the country. According to Telsyte’s latest estimate, Disney+ boasts approximately 3.1 million Australian subscribers.
In the fiscal year to September 30, Disney’s total revenue in Australia increased to $810.7 million from $704.5 million. The company reported a profit of $60.2 million, paying $18.5 million in taxes and declaring a 30% increase in profits.
It also maintained a dividend payment of $35 million to its parent company, consistent with the previous financial year.
SOURCE: AFR
Such a shame. I cancelled my subscription (because there’s virtually nothing worth watching on Disney) a few days ago, so won’t get to pay the new rate
Not paying that much for Disney+.
Maybe they shouldn’t have deliberately screwed over their physical disc business. I’ll just torrent and import instead.
Pricing themselves way out of the market. Read the room, Disney. You’re not worth it. Cancelling subscription, like many others will.
Trish McBride
Feels like ad-free 4K for $8.99/mo or $89.99/yr was only yesterday…
The outright greed of these companies replacing their ad-free good quality streaming services that didn’t nickel and dime their users with costlier, ad-laden services in substandard quality because their business model of refusing to license their content and introducing their own costly rivals wasn’t sustainable.
Amongst my friend group, at best they’re churning between streaming services seasonally, otherwise they’re back to sailing the seven seas, and who can blame them?
And yes, Disney in particular get no sympathy after existing physical media and removing content for tax breaks. They treat viewers like scum.
This is ridiculous. They already bastardize certain shows. Like family guy. That has all swear words bleeped out. Also they straight cut certain jokes out. Take certain endings out. Apparently even full episodes. Because it offends people. I’m an adult. I pay for this because they own adult cartoons. Why do they buy them? if they won’t show them without an option to not view a pg13 bastardized version. What happened to freaking parental locks on these things? Let the idiots with kids block the show. Let me as an adult get the version I pay for. So yeah put it up 4 bucks a month. I’ll cancel. I’ve got most DVDs of said shows anyway and their new stuff. Isn’t worth it. Poor PC based episodes of shite. Def not worth almost $20 a month.
when will people wake up to the fact that subscriptions are a scam. local libraries have a lot of cheaper options for entertainment